The Cabinet approved a plan for the creation of agricultural cooperatives and their state support (document)

Ирина Орлонская Economy
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The Cabinet of Ministers approved a program for the creation of agricultural cooperatives and providing them with accessible support. The order was signed on March 5, 2026.

This document has been developed to implement the presidential decree aimed at further developing the agro-industrial complex, consolidating small-scale production, updating the technological base, increasing agricultural production volumes, and ensuring food security.

Under the order, local authorities and authorized representatives of the president in the regions are tasked with creating at least one consolidated pilot agricultural cooperative in each district.

According to the plan, a business plan will be developed for the cooperatives, taking into account local geographical and climatic conditions. It is also planned to provide low-productive pastures for a period of up to 20 years after changing the land designation, as well as ensuring irrigation water and developing hydraulic infrastructure, including the construction and restoration of reservoirs and canals.

The plan also includes measures for financing cooperatives through state programs, banks, and regional funds. The lending conditions will be simplified, guarantees will be provided in case of insufficient collateral, and a flexible repayment schedule and leasing of agricultural machinery on preferential terms will be introduced.

Additionally, funding for cooperatives through international financial institutions is provided. In particular, projects such as "Comprehensive Increase in the Productivity of the Dairy Sector" for $30 million, "Development of Sustainable Agro-Food Clusters" for $35 million, and "Development of Climate-Resilient Value Chains in Agriculture" for $40 million are planned.

Further assistance will be provided to cooperatives in securing fuel, fertilizers, seeds, and breeding stock, as well as consulting and advertising support.

Participants in the implementation of the plan are required to submit reports on its progress every six months, and summarized data will be sent to the Presidential Administration.

Plan
NoTasksActivities/ActionsImplementation PeriodExpected ResultsResponsible ExecutivesFunding Sources
1Creation of consolidated agricultural cooperatives and assistance in their registration, producing "one bulk product" at the level of one village in each district of the republicExpanding opportunities for creating large agricultural cooperatives2026Large agricultural associations formed in each district of the republicPP PCR in the regions, MGA, RUAR, OMSU (by agreement), MVSHPCooperative's own funds, regional development funds
2Assistance in developing business plans for cooperatives, taking into account regional featuresCreation of business plans with cooperative development indicators2026Development directions for cooperatives identifiedMGA, RUAR, OMSU (by agreement)Cooperative's own funds
3Provision of low-productive pastures for large cooperatives for up to 20 years for agricultural productionEffective use of agricultural land2026-2030Large associations provided with land resourcesMGA, RUAR, OMSU (by agreement), Land AgencyCooperative's own funds
4Provision of irrigated water for the cultivated areas of cooperativesDevelopment of measures to ensure irrigation2026-2030Cooperatives fully provided with irrigation waterSVR, RUAR, OMSU (by agreement)Budget funds
5Construction and restoration of reservoirs and canalsWorks on the construction of hydraulic structures2026-2030Irrigation systems restoredSVRCooperative's own funds
6Creation of infrastructure for cooperatives, provision of electricity, and rental of unused facilitiesEffective use of unused facilities2026-2030Conditions created for production growthMGA, OMSU (by agreement)Cooperative's own funds
7Financing cooperatives through state projects and fundsProviding cooperatives with financial resources2026-2030Cooperatives provided with state loansJSC "Aiyl Bank" (by agreement), JSC "Eldik Bank" (by agreement)State funds
8Simplification of lending conditions for cooperatives without considering the personal obligations of participantsCreation of a flexible lending mechanism2025-2026Improved opportunities for obtaining preferential loansMVSHP, JSC "Aiyl Bank", JSC "Eldik Bank"Repayable loans
9Provision of collateral when obtaining preferential loansCreation of conditions for obtaining loans2025-2026Conditions for obtaining preferential loans createdJSC "Aiyl Bank", JSC "Eldik Bank"No budget funds required
10Guarantees for cooperatives in case of insufficient collateralProvision of collateral for obtaining loans2026-2030Conditions for obtaining loans createdJSC "Guarantee Fund"Fund's resources
11Flexible loan repayment schedule depending on seasonalityDevelopment of a loan repayment mechanism2026-2027Conditions created for the development of cooperativesJSC "Aiyl Bank", JSC "Eldik Bank"No budget funds required
12Leasing of agricultural machinery on preferential termsCreation of conditions for increasing production volumes2026-2030Material and technical base strengthenedJSC "Aiyl Bank", JSC "Eldik Bank"Budget funds and bank funds
13Financing cooperatives through projects to increase the productivity of the dairy sector and agro-food clustersCreation of conditions for financing cooperatives2026-2030Material and technical bases of cooperatives strengthenedCenter for Competitiveness of AgribusinessWorld Bank funds
14Financing through the project for creating value chains in agricultureCreation of conditions for financing cooperatives2026-2030Increased volumes and quality of productionORSPAsian Development Bank funds
15State provision of cooperatives with fuel and fertilizers at reduced pricesCreation of conditions for production development2026-2030Cooperatives provided with quality resourcesMVSHP, FGMFunds approved for the respective years
16Provision of breeding animal seeds for breeding livestockCreation of conditions for the development of cooperatives2026-2030Cooperatives provided with quality seedsSVRZPK, KNIIZHPFunds approved for the respective years
17Subsidization of cooperatives for the purchase of agricultural crop seedsPreferential conditions for purchases2026-2030Cooperatives provided with certified seedsMVSHP, MF, DESHKSFunds approved for the respective years
18Consultations on fertilizers, veterinary drugs, and modern technologiesDissemination of information for cooperatives2026Small producers received complete informationDepartments and research institutesNo budget funds required
19Attracting investments and improving financial mechanisms to support cooperativesCreation of conditions for the development of cooperativesConstantlyIncreased production volumesMVSHP, international organizationsNo budget funds required
20Information support for the creation of large cooperativesDissemination of information for cooperativesConstantlyIncreased awareness among producersPP PCR in the regions, MGA, RUAR, OMSUNo budget funds required
21Monitoring of created and operating cooperativesAccounting and analysis of their activities2026-2030Statistical databases createdRelevant state bodies, PP PCR in the regions, MGA, RUAR, OMSUNo budget funds required
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